Our Fab Five Predicts 2013

Every December, trendsetters, astrologers, and clairvoyants test their credibility with a slew of prognostications – only some of which ever come true. Here at CNBC, we also like to show off our talent for predictions. Since we've got our finger on the pulse of the news and the global markets, our financial contributors are usually pretty smart about what the next year will bring.

We asked the CNBC Fab Five -- Maria Bartiromo, Jim Cramer, Larry Kudlow, Joe Kernen and Tyler Mathisen -- to ponder a few weighty financial questions and give us their wisdom. Below is our annual look-ahead to what we call The Big Picture.

Let us know if you agree – or if you don't – with their predictions for 2013.

1. What is the biggest threat to the U.S. economy next year and what has the greatest potential to boost business in 2013?

2. What is in store for interest rates in 2013?

CRAMER: I think rates can go much higher. Perhaps as much as 3.75 percent for the 30-year treasury.
KERNEN: Like watching grass dry, or paint grow. Courtesy of Bernanke and Co.
MATHISEN: Basically flat but slightly higher for treasuries and mortgages.
BARTIROMO: Interest rates will continue to stay at rock-bottom levels. The Fed has already told us rates will remain at very low levels until 2015. I would expect QE4 to be announced sometime in 2013, which will reinforce this notion.
KUDLOW: Don't look for much change in next year's interest rates barring a fiscal cliff recession, which I do not expect. The Fed will be ultra-easy, short rates stay near zero, QE in perpetuity. Long rates could drift higher from modest inflation pick-up from a soft dollar.

3. Where will the unemploymentrate be by this time next year?

CRAMER: I think we could see employment at 7 percent.
KERNEN: Still in the 7s…
MATHISEN: Unemployment will go down, but it won't be lower than 7.5 percent.
BARTIROMO: The unemployment rate will likely stay around 8 percent, if not get worse, particularly if we go over the fiscal cliff. The upcoming expiration of the Bush tax cuts and the cuts in spending will likely push the economy into recession next year if not addressed, which will send unemployment higher.
KUDLOW: With tax increases likely, including the Obamacare tax and regulatory and mandate increases, don't expect growth or unemployment to change much. Entrepreneurs are ready to rock, but they need a dose of free market policies to unleash confidence. I'm not optimistic about that.

4. Which companies do you think will become irrelevant in 2013?

CRAMER: Advanced Micro Devices, Nokia, Sony
KERNEN: The New York Times and other print-based entities.
MATHISEN: Best Buy
BARTIROMO: There will always be relevant and irrelevant names. What investors need to focus on are fundamentals. What we have learned again and again from the dot.com boom and bust and the housing boom and bust and so many other bubbles is, if it looks too good to be true, it probably is. So look for those companies that may have a mismatch in terms of revenue and earnings growth relative to their market valuation for those that could end up busting.

5. Who will win the World Series in 2013?

CRAMER: OK, I think pitching is everything, which means San Francisco is going to win the World Series. It bothers me because I'm a Philadelphian, and at one point the Phillies had the best rotation -- but our rotation got old. It's almost as if the Giants' rotation got young, so they're going to win it.
KERNEN: Every year I predict the same winner, and that would be the Big Red Machine. The Big Red Machine is coming back; we're going to call it that again -- Cincinnati Reds.
MATHISEN: I think the two teams in the World Series next year will be the Cincinnati Reds and the Los Angeles Angels of Anaheim. The Angels have got a great team and the best manager in baseball, Mike Sosa. I think they are ready, and I think they'll win it in 2013.
BARTIROMO: New York Yankees
KUDLOW: It's gotta be the New York Yankees, but then again I say that every year. I am a manic Yankee fan, and they are going to have to change two-thirds of their lineup and their pitching staff. But yeah, go Yankees go.


Looking ahead to 2014

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